Narrative Opinion Summary
The court reviewed a petition against the Federal Energy Regulatory Commission (FERC) brought by the Midwest ISO Transmission Owners, who challenged the Commission's application of the cost causation principle related to administrative cost adders. The Transmission Owners argued that costs should be directly tied to actual grid use, but this issue was not raised before FERC, thus excluding it from this review. They also claimed FERC acted arbitrarily by not addressing potential duplicate charges, although this matter was deferred to a related proceeding. The court noted the Transmission Owners' failure to file for rehearing on this referral. Additionally, concerns about unequal treatment of grid users were dismissed as FERC clarified that all users would incur the administrative charge. The petition for review was denied since procedural requirements were unmet and FERC's actions were justified. The decision remains unpublished in accordance with D.C. Circuit Rule 36, pending any rehearing petitions.
Legal Issues Addressed
Arbitrary and Capricious Standard in Administrative Lawsubscribe to see similar legal issues
Application: The court found no arbitrary and capricious action by FERC regarding the duplicate administrative cost adder charges as the issue was to be addressed in a related proceeding.
Reasoning: The Transmission Owners also claimed it was arbitrary and capricious for FERC to acknowledge the potential issue of duplicate administrative cost adder charges without resolving it.
Cost Causation Principle in Regulatory Decisionssubscribe to see similar legal issues
Application: The court denied the claim that FERC failed to adhere to its cost causation principle, as the argument was not previously raised before the Commission.
Reasoning: The Midwest ISO Transmission Owners contended that the Commission neglected its 'cost causation' principle, asserting that costs imposed by the administrative cost adder on grandfathered-agreement loads outside the Midwest ISO footprint should be directly linked to the actual use of the transmission grid.
Equal Treatment of Grid Users in Administrative Chargessubscribe to see similar legal issues
Application: FERC's position that all users of the Midwest ISO transmission grid would be subject to the administrative cost adder was affirmed, refuting claims of disparate treatment.
Reasoning: However, FERC's counsel clarified that all users of the Midwest ISO transmission grid would be subject to this charge, dispelling the Transmission Owners’ concerns.
Requirement for Rehearing Requests on Modified Orderssubscribe to see similar legal issues
Application: The Transmission Owners' failure to file for rehearing on the referral to a related proceeding precluded them from challenging FERC's decision.
Reasoning: The Transmission Owners argued against this referral but did not file for rehearing regarding this decision, which is required when a subsequent order significantly modifies the earlier order.